Specific Audit Requirement W.r.t to Section 143(3)(d) of companies Act 2013 read with rules 11(8) of Companies (Audit and Auditors) Amendment Rules, 2017
Audit Procedure W.r.t specific reporting u/s 143(3) over financial statements .
Obtain the following information during the Audit engagement performance
1. Closing Cash in hand As on 8.11.2016
2. Denomination wise cash balance as on 8.11.2016
3. Cash balance in SBN’s as on 8.11.2016
4. Nature of Expenses on Which such SBN’s has expended
5. Closing cash balance certificate from the management as on 8.11.2016
6. If any receipt of SBN during the period 8.11.2016 to 31.12.2016. Provide the nature of transaction & Certificate w.r.t to same
7. IF details of payments in SBN given by the company check the following :-
a) Payments for permitted transaction as specified from time to time during period 8.11.2016 to 31.12.2016
b) Deposit in Bank Account demand the counterfoil & Verify the amount ,date ,denomination
8. Obtain management representation regarding the following :-
a) Completeness of the disclosure made in notes to the financial statements.
b)manner of dealing in SBN’s during the period of 9.11.2016 to 31.12.2016
c) permitted receipt & payments made by company as per government notifications issued from time to time
| S.No. | Situation | Reporting |
| 1 | Where the company has provided requisite disclosure in F.S as to holding as well as dealing in SBNs and Auditor is able to report on same | The company has provided requisite disclosures in FS as well as dealing in SBN during the specified period based on audit proceedures followed & relying on the representation provided we report that disclosures is as oer the books maintained by the company |
| 2 | where the clause is not applicable to the company | company didn’t have any holding & Dealings in SBN during the period 8.11.2016 to 31.12.2016 |
| 3 | Where the company has provided the requisite disclosures in th F.S as to holding as well as dealings in SBN’s. However Auditor is not able to verify the the same due to non Availability of SAAE resulting into scope limitation | The company has provided the requisite disclosure in F.S as to holdings as well as the dealings in SBN’S during the period from the 8th nov 2016 to 31st december 2016 . However we are not able to obatain sufficient & Appropriate Audit Evidence to report on whether the disclosures are in accordance with books of Accounts maintained and Produced by management |
| 4 | Where the company has not provided requisite disclosures in F.S as to holding as well as dealings in SBN’S | The company has not provided requisite disclosures in F.S as to holding as well as dealing in SBN during the period 8.11.2016 to 31.12.2016 |
| 5 | Where the company has not provided certain Disclosures in F.S as to holding as well as dealings in SBN | The company has not provided Certain disclosures in F.S as to holding as well as dealing in SBN during the period 8.11.2016 to 31.12.2016.Consequently we are not able to obtain Sufficcient & Appropriate Audit Evidence to report whether the disclosures to the extent stated in notes are in accordance with books of account maintained and produced by the management |
| 6 | Where the company has provided requisite disclosures in the FS as to holding as well as dealings in SBNs but have transacted in Non permitted receipts/Payments | The company has not provided Certain disclosures in F.S as to holding as well as dealing in SBN during the period 8.11.2016 to 31.12.2016.however as stated in notes to the financial statements amounts aggregating Rs…………….as represented to us by the management have been utilised for other than permitted transaction/Received amount aggregating Rs…………from the transaction which are not permitted. |
Note:-(a) for the s.no. 3,4,5 Auditor shalll also consider to report u/s 143(3)(a) of companies act 2013
(Other matters to include in Audit report)
(b) There could be one or more observation w.r.t above scenarios .
Auditor require to incorporate the same in Audit report
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